Ofgem rejects TPI obligations
Ofgem has recently rejected the proposal from the Retail Energy Code Company (RECCo) to mandate their Third-Party Intermediary (TPI) Code of Practice (CoP) for all energy brokers. The proposal was aimed at mandating assurance and accreditation for TPIs in the UK energy market. Ofgem concluded that it doesnโt currently have the legal authority to regulate TPIs or determine who may operate in the market but acknowledges the need for more robust oversight of TPI conduct.
Instead, the focus appears to be shifting towards the Department for Energy Security and Net Zeroโs (DESNZ) proposed regulatory framework, which, if implemented, aims to ensure fair treatment of consumers and a level playing field. In the interim, the Retail Energy Code Company will continue to maintain and enhance the voluntary TPI Code of Practice, encouraging wider industry adoption to embed best practice and foster greater trust and transparency in the non-domestic energy market.
NUS Consulting Group registered to the voluntary Code of Practice on the 14th of June 2024. At the time of writing, 46 TPIs have registered to the Code of Practice โ for context, there are estimated to be around 3,000 TPIs in the UK market.
Investment in clean technologies to reach record highs of $2.2 trillion in 2025
The International Energy Agencyโs most recent annual World Energy Investment report predicted investment in clean technologies โ renewables, nuclear, grids, storage, low-emissions fuels, efficiency, and electrification โ to reach a record $2.2 trillion this year. A key driver, alongside efforts to reduce emissions, is attributed to energy security concerns and the cost competitiveness of electricity-based solutions.
In contrast, Investment in oil, natural gas, and coal is set to decline to the figure of $1.1 trillion.
UK Government is in danger of missing its targets for decarbonisation of the electricity system by 2030
The House of Lords Industry and Regulators Committee has warned the Government that unless it drastically steps up the scale and pace of building more energy generation and network infrastructure, it is in danger of missing its clean power target of decarbonising the electricity system by at least 95% by 2030.
The committeeโs report calls for stronger government leadership, improved coordination between DESNZ, Ofgem, and the National Energy System Operator (NESO), and enhanced planning frameworks to accelerate grid expansion.
UK Government pledges ยฃ14.2bn of Investment to Sizewell C nuclear power plant
On the 10th of June, the UK Government committed ยฃ14.2bn of public spending to build the Sizewell C nuclear plant. The nuclear power plant based on the Suffolk coast will be funded through a Regulated Asset Base (RAB) model. The model will be administered by the Low Carbon Contracts Company (LCCC), as per the Contracts for Difference (CfD) scheme, with the RAB levy being passed on to consumers via the supplier. It is unclear when the RAB Levy charge will appear on electricity invoices; however, NUS Consulting Group will make clients aware once the date has been announced.
Once the project has been completed, the UK Government will be the majority shareholder of Sizewell C alongside EDF Energy.
UK Government announces British Industrial Competitiveness Scheme
The British Industrial Competitiveness Scheme, set to launch in 2027, is a UK government initiative aimed at reducing electricity costs for over 7,000 energy-intensive businesses by up to 25%. Targeting key sectors such as steel, chemicals, automotive, and aerospace, the scheme includes exemptions from certain green levies and increased grid-connection discounts โ rising from 60% to 90% for the most energy-demanding firms. It forms part of a broader industrial strategy to enhance UK manufacturing competitiveness, attract investment, and secure jobs, while ensuring that the reforms are funded through systemic energy market changes rather than additional costs to consumers.
Details of which businesses are eligible and further details on the exemptions will be determined following a two-year consultation period. NUS Consulting Group will continue to monitor Government publications and provide updates throughout the two-year consultation period.
That concludes this issue of the UK Energy Industry News Update, highlighting key developments shaping the energy sector. For further details or to discuss how these changes may impact you, please contact us.